With shipments of stainless steel soaring in recent years and prices of other raw materials still at premium levels after Indonesia banned nickel ore exports, the value of Indonesia's exports has a chance to hit a new record of $280 billion in 2022.
Southeast Asia's largest economy has been enjoying an export boom for more than a year thanks to higher commodity prices and the ongoing war between Russia and Ukraine. Indonesia is rich in natural resources. It is the world's largest exporter of thermal coal, palm oil and refined tin. It is also a major seller of stainless steel, copper, rubber and other resources.
The Indonesian government has sought to attract foreign investment in the processing industry after banning the export of nickel ore in 2020. Indonesian officials want to replicate this success with bauxite, copper, tin and processing palm oil into higher-value products.
The government points out that exports totalled $232bn last year and could reach $280bn this year. Perhaps by 2024, it could reach at least $300 billion. With luck, Indonesia's GDP is expected to reach $3.5 trillion in 2030, almost three times the $1.19 trillion in 2021.
According to official Indonesian estimates, the value of nickel shipments will rise to about $30 billion in 2022, accounting for about 10 percent of estimated exports. The value of nickel exports was $21 billion in 2021, up from $1.4 billion in 2015. Prices for some raw materials are likely to fall next year, but prices for coal and palm oil are expected to remain high. Meanwhile, Indonesia also hopes to produce electric battery products by 2024.
